Closing Gold & Silver Market Report – 10/26/2011
CHINESE AID ALLEVIATES FEAR; EUROPE STILL NOT FIXED
Gold made nice gains today, although it has backed off slightly since the Mid-Day Commentary.
French President Nicolas Sarkozy will speak directly with the head of the Chinese government, Hu Jintao, to appeal to China for an investment in the European Financial Stability Facility (EFSF), the bailout fund organized by EU countries to prevent a euro zone collapse. The fund has already been expanded from its original scope, and leaders will meet tonight to discuss a further expansion, possibly involving the Chinese investment. The EFSF has already borrowed hundreds of billions of euros to finance aid packages given to heavily-indebted countries in the euro zone.
According to a World Gold Council report, gold is becoming an increasingly important portfolio balancing tool. “[T]he report suggests that even if investors hold alternative assets, they are no substitute for the protection that a distinct allocation to gold can offer.” Even a small allocation to gold, by mitigating risk, can consistently increase the returns from a portfolio.
At 4:15 pm (CT) the APMEX precious metals spot prices were:
- Gold - $1,727.60 – Up $25.20.
- Silver - $33.43 – Up $0.34.
- Platinum - $1,597.00 – Up $28.20.
- Palladium - $651.60 – Down $2.50.